DA cites EDCO for violating open-meeting law

The Economic Development Corporation of Oxnard violated the state's open meeting law last month when it canceled a special board meeting but then reconvened it about 20 minutes later, according to the Ventura County District Attorney.

"It is our conclusion that a violation of the Brown Act occurred, and we make a demand that the violation be cured or corrected," Special Assistant District Attorney Michael Schwartz said in a letter sent to EDCO on Thursday.

Although the violation did not appear to be deliberate, Schwartz said the "cure" for the violation would be to reschedule the meeting and have a new vote on the item. The DA gave the semipublic organization 30 days to correct the problem.

"We're going to do exactly what the DA asked," said Steve Kinney, president of EDCO. "We're going to reschedule the item for our February 22nd meeting."

Kinney, who was traveling to Washington, D.C., on Friday, said the Brown Act violation was unintentional.

At the Jan. 18 meeting, board members approved a change in the organization's bylaws to create a "business council" for certain board members so they can continue participating in EDCO in an advisory role, but free them from filing state-mandated financial disclosure forms. Technically, they no longer would be considered on the board of directors and subject to the state rule.

The idea came about because certain board members — a banker and an attorney — did not want to disclose what they felt was privileged client information.

It's unclear how many of the 16 directors plan to step down from the board to join the business council.

Earlier this week, Kinney said he didn't know who on the board might leave or whether the advisory panel would work.

Schwartz said his office had serious concerns about the change to the bylaws from "both a legal and a policy perspective."

The intent of the Fair Political Practices requirement for disclosing financial interests is to ensure that public entities do not create a perceived or real conflict of interest and public officials remain impartial in their decision-making.

Kinney said he was going to ask the board to definitely take the DA's letter into consideration when considering the matter at the next meeting.

EDCO, which was set up 17 years ago, is like many other economic development organizations across the state. It's purpose is to bring in businesses to Oxnard and help those companies thrive. It was deemed a semipublic agency almost a decade ago because it gets more than half its funding from the city, which amounted to a little more than $300,000 last year.

At the Jan. 18 meeting, the board chairman canceled the 8 a.m. meeting because there wasn't a quorum. But he reconvened the meeting about 20 minutes later with the required quorum when another board member showed up.

Bert Perello, a postal carrier and active member of the Inter-Neighborhood Council in Oxnard, showed up to speak at the public meeting but left when it was called off. On his way out, he phoned friend Edward Castillo, who also was planning to attend the meeting. Perello told Castillo not to bother.

Both men wanted to comment about the changes to the bylaws. They and others are concerned that not disclosing financial interests runs counter to city of Oxnard's transparency policy.

Perello, who serves on a construction advisory committee for the Oxnard School District, noted he has to file financial disclosure forms.

"Even if you serve on the library board you have to do that, so I think it was a mistake to create this committee to get around the requirement," Perello said, adding that if someone is uncomfortable with the disclosure maybe they shouldn't help oversee EDCO.

Perello learned the meeting had indeed been held later that day from City Councilman Bryan MacDonald, who serves on the EDCO board with Mayor Tom Holden. The councilman mentioned it to him in passing.

Perello said he was shocked. He discussed it with Castillo, who suggested Perello report the matter to someone. Perello sent the information to the District Attorney's Office.

Perello said Kinney left a message on his answering machine Thursday after receiving the DA letter, telling him that the meeting would be rescheduled but that it didn't look like the business council idea would work. Perello said he appreciated the District Attorney stepping in on behalf of the public's right to know.